By William L. Watts
FRANKFURT (MarketWatch) -- Manufacturing activity in the 17-nation euro zone shrank at the fastest pace in three years in May, according to the Markit purchasing managers' index for the sector released Friday. The index fell to 45.1 from 45.9 in April and was little changed from a preliminary estimate of 45.0. A reading of less than 50 signals a contraction in activity. "Euro-zone manufacturers reported a deepening downturn in May, indicating that the damage to the real economy caused by the region's financial and political crises continues to spread across the region," said Chris Williamson, chief economist at Markit. The data indicates the sector is contracting at a quarterly pace of around 1%, Markit said.
